Keys to Vehicle Leasing
Sample Leasing Form - Page 2
21. Insurance: Generally you are responsible for providing insurance. Lease agreements typically require that you maintain vehicle collision and comprehensive insurance as well as liability insurance for bodily injury and property damage. You may be required to carry higher levels of insurance in a lease than the minimum required if you buy the vehicle. Ask the lessor what happens in the event your vehicle is stolen or totaled and the amount you owe is greater than the amount covered by your insurance--a difference often referred to as the "gap."
22. Standards for Wear and Use: Be sure you understand what is considered normal wear and use and what is considered excess, because you may have to pay for any excess wear and use if you return the vehicle at the end of the lease. For example, how much tread must be on your tires when you turn in the vehicle at the end of the lease?
24. Warranties: You generally receive the benefit of all warranties and recall notices that apply to your vehicle. A warranty usually covers specified mechanical problems during a specified period of time or for a specified number of miles.
25. Early Termination and Default: This section outlines what happens if the lease is terminated early and describes how any early termination charges are calculated. Early termination may be voluntary or involuntary (for example, early return of the vehicle, theft or destruction of the vehicle in an accident, or default on the lease).
27. Late Payments: Late payment fees may be limited by state law, so check with your state's consumer protection office or Office of the Attorney General to learn if there are limits where you live. In addition to fees for late payments, your lease agreement may include charges for delinquency or default.